South Korean Retail Investors Accelerate Exodus from Stock Market, Trading Share at Six-Month Low

BlockBeats News, August 4th. Today, a South Korean exchange stated that as the market experienced intense volatility, weakening investor sentiment, South Korean retail investors are rapidly withdrawing from the stock market. Data shows that in July, the proportion of individual investors in the trading volume of the Korea Composite Stock Price Index (KOSPI) was around 31.2% to 31.5%, a significant decrease from 48.1% in January. In just six months, this proportion has dropped by approximately 16 to 17 percentage points.

The South Korean exchange indicated that even a slight rebound in the index now triggers sell-offs, as investors are eager to recoup their principal and exit, accelerating the outflow of funds from the domestic South Korean market. Since June, individual investors have also ceased to be the main force in market transactions. In July, foreign investors accounted for around 38% to 39% of the KOSPI trading volume, significantly surpassing retail investors. Analysts point out that the KOSPI index is highly dependent on Samsung Electronics and SK Hynix, the two major leading companies, which is a key reason for individual investors staying away from the South Korean market.